Hi everyone,

I am looking for unofficial advice, you don’t have to be a tax professional, I’m just curious what you would do :)

So, let’s say I had a little Etsy shop. Some of my items contained magnets, so out of fear of being sued over, I opened an LLC.

For years I didn’t make my income. I had a few sales, but I spent more on supplies per year than I made on sales. I collected a big stash of supplies because buying art supplies is fun! I was hoping my shop would become more popular.

Because I had years of no profit my tax professional was worried I would get audited because that is suspicious to the IRS.

So, I stopped paying to renew the LLC, and transferred all of the art supplies to myself and I closed the bank account.

It’s been 3 years. Now I want to start selling on Etsy again.

How do I restart? What happens to my art supplies? Can I sell them back to myself? What about art supplies I’ve purchased in the meantime I want to use for items I sell?

Just like when I started, I am worried about being sued over the magnets because magnets are dangerous and I have assets I need to protect.

What would you do?

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